Angel Investors are wealthy individuals who are looking to invest in exciting businesses. They will normally invest in return for a share of equity in the business. Beyond cash, they often have skills, knowledge, and networks that can add value to your startup or businesses.
Angel investors look to make a series of investments as a part of a portfolio and the amounts they invest can vary. They may invest alone, as a part of angel syndicate or increasingly through equity platforms such as Growcent.
Getting investment funding is not as simple as applying for a loan and waiting for approval. You need to make sure to find an investor, determine what information to present, then prepare and deliver your pitch. Once an angel investor is interested, then you need to discuss some of the terms, agree on a funding structure, and follow up with the investor until you receive funding.
You may already have connections to an angel investor that you are not aware of. The best way to find out is to network with people you already know. Your current business and personal connections may be able to introduce you to potential investors.
Some potential ways to find angel investors include:
Get feedback on your product from experts.
Inquire with friends, family, and your business network.
Connect with other business owners
Canvas professionals around the space
Once you have got to know a potential investor, have a preliminary discussion with them. This conversation may not be in the form of a formal meeting but could be a phone call or email exchange. The point of this conversation is to give your elevator pitch and to find out what aspects of your business are most essential to the investors. Once you know the areas of interest to the investor, be certain to address those specifics in your pitch deck.
Your pitch deck is mainly one of the first introduction potential investors will get to your business and should be tailored to the specific investors to which you are presenting. Having a well put together and professional looking pitch deck can be so much crucial to securing funding. The average pitch deck is roughly 19 pages or slides and covers the various details about your proposal, which includes your problems your product is solving, the competitive market, and the financial needs of the market.
With your pitch deck complete and your product ready to be debuted, it is the time to present your business to the world of investors. With the help of your pitch deck as a guide, you will need to present your proposal to investors, and even highlight to them what makes your business and product unique and innovative. A solid and well-rehearsed presentation is imperative to the success of your investor pitch.
Firstly, when you presented the pitch, and the angel investor has expressed interest in your startup, you will discuss the terms that would be associated with accepting the angel funding. These terms are negotiable and require both parties to agree to move forward.
Of all the terms and conditions that you will negotiate concerning receiving angel funding, the funding structure will likely be the most confusing. Moreover, you must also need to understand the terms you agree to, which includes when and how the angel funding will be repaid.
It can even take some time between pitching your business to an investor, working out the details of the deal, and receiving funding. Then, follow up regularly with the investor to answer questions they may have, and to determine expected timelines for funding.
Open and continuous communication with the investor will be essential as you become business partners, and establishing this rapport early sets the stage for future discussions.
Due to the uncertainly of receiving funding from any single angel investor, it is wise to court multiple investors. Even if you think that an investor will give you funding, having additional options lined up can save time if the investor backs out for any reason.
After the investment of funding, the share certificates have to be issued to angel investors which act as a proof for the ownership of the individual in the company.
Are you looking for an angel funding, if yes? Then you are at right place. Sign up on the Growcent and get connected with the multiple investors for your startup!